Exclusive: Germany set to oppose EU tariffs on Chinese electric vehicles

Germany is preparing to vote against proposed EU tariffs on Chinese electric vehicles, aiming to avoid trade tensions and protect its economic interests. The move reflects concerns over the impact of tariffs on the automotive industry, which relies heavily on exports and global supply chains. This decision could influence broader EU-China trade relations and future regulations on electric vehicles.

On Friday, Germany plans to oppose the implementation of European Union tariffs on Chinese electric vehicles, according to sources who spoke with Reuters. In a prior non-binding vote in July, Germany abstained from taking a stance on the European Commission's proposal to impose these tariffs. However, following mounting pressure from the automotive industry, Chancellor Olaf Scholz has decided to take a firm stand against the measure during the upcoming vote by EU member states.

The European Commission's proposal requires a qualified majority of 15 EU member states, representing at least 65% of the EU population, to be voted down in order to be blocked. This threshold poses a significant challenge. Reports indicate that countries such as France, Greece, Italy, and Poland are expected to support the tariffs, potentially ensuring the adoption of these significant trade measures within the EU.

A spokesperson for the German government refrained from providing any comments on the matter. The Commission argues that these tariffs are necessary to address issues related to cheap loans, land, raw materials, and other subsidies. The intention behind the tariffs is to create a level playing field for European car manufacturers, rather than attempting to exclude Chinese carmakers, which is a concern given the United States’ proposal for a 100% tariff on these vehicles.

German automakers have expressed their opposition to the tariffs, as they derived one-third of their sales from China in the past year. There is considerable concern about potential retaliatory measures from China and the risk of sparking a trade conflict with one of Germany's key trading partners. Additionally, IG Metall, Germany's influential labor union, along with employee representatives from the major German car manufacturers, issued a statement on Thursday urging the country to vote against the proposed tariffs.

In their joint statement, they emphasized their position, stating, “We say unequivocally: tariffs are the wrong approach because they will not improve the competitiveness of the European automotive industry.” This sentiment reflects a broader apprehension within the industry regarding the long-term implications of such tariffs on the market dynamics between Europe and China, as well as their impact on the German automotive sector's competitiveness.

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Source: Reuters‍